What was the deferred income taxes amount for Sonesta Select Sonesta Essential in 2023 (restated)?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
matters that we identified during the audit.
March 24, 2025
RED LION HOTELS CORPORATION CONSOLIDATED BALANCE SHEETS
(amounts in thousands, except share data)
| December 31, | ||||
|---|---|---|---|---|
| 2024 | 2023 | |||
| ASSETS | ||||
| Current assets: | ||||
| Cash and cash equivalents | $ | 13,316 | $ | 37,753 |
| Accounts receivable, net | 9,258 | 7,259 | ||
| Notes receivable, net | 40 | 42 | ||
| Prepaid expenses and other current assets | 4,592 | 3,441 | ||
| Total current assets | 27,206 | 48,495 | ||
| Property and equipment, net | 1,178 | 816 | ||
| Intangible assets, net | 20,884 | 21,153 | ||
| Operating lease right of use assets | 1,686 | 2,131 | ||
| Goodwill | 19,680 | 19,680 | ||
| Other long term as sets | 30,308 | 12,324 | ||
| Total assets | $ | 100,942 | $ | 104,599 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
| Current liabilities: | ||||
| Accounts payable | $ | 1,481 | $ | 1,915 |
| Accrued compensation | 4,202 | 3,745 | ||
| Accrued expenses and other current liabilities | 868 | 1,631 | ||
| Operating lease liabilities | 581 | 595 | ||
| Total current liabilities | 7,132 | 7,886 | ||
| Long term liabilities: | ||||
| Operating lease liabilities, net of current portion | 1,218 | 1,680 | ||
| Due to related parties | 7,234 | 8,768 | ||
| Deferred income taxes | 235 | 235 | ||
| Loyalty program | 139 | - | ||
| Other long-term liabilities | 6,753 | 4,886 | ||
| Total long term liabilities | 15,579 | 15,569 | ||
| Total liabilities | 22,711 | 23,455 | ||
| Commitments and contingencies (Note 8) | ||||
| Shareholders' Equity: | ||||
| Common shares, $0.01 par value; |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 84)
What This Means (2025 FDD)
According to Sonesta Select Sonesta Essential's 2025 Franchise Disclosure Document, the deferred income taxes for the year 2023 was $235. This figure is part of the long-term liabilities reported on the balance sheets. It represents the tax effect of temporary differences between the book value of assets and liabilities and their tax bases. These differences arise because certain items are recognized in different periods for financial reporting and tax purposes.
Deferred income taxes can be either assets or liabilities. A deferred tax liability, like the one reported here, indicates that Sonesta Select Sonesta Essential expects to pay more in taxes in the future due to these temporary differences. This liability arises when taxable income is lower in the current period but will be higher in future periods. For a franchisee, understanding deferred tax liabilities is crucial because it provides insight into the company's future tax obligations and overall financial health.
The fact that the deferred income taxes amount is the same in 2023 and 2024 ($235) could indicate consistent accounting practices and stable temporary differences during those years. However, it's important to note that deferred tax liabilities can be affected by changes in tax laws, business operations, and accounting estimates. Therefore, franchisees should monitor these factors and consult with financial advisors to fully understand the implications of deferred taxes on their investment.